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RBI cautions banks on e-banking

The Reserve Bank of India (RBI) had cautioned banks that though e-banking as a new technology has many capabilities, it also has many problems and users are hesitant to use the system.
“The use of e-banking has brought many concerns from different stakeholders. Everybody’s primary concern is security. As more and more people are exposed to the information superhighway, privacy of information and the security that goes hand and hand with this information is crucial to the growth of electronic transactions,’’ said R Gandhi, executive director , Reserve Bank of India. Gandhi said in order to provide effective and secure banking transactions, there are four technology issues that need to be resolved. “The key areas are the security, privacy and authentication,” he said.

By strengthening the privacy technology, this will ensure the secrecy of sender’s personal information and enhance the system’s security. “Also encryption may help make the transactions more secure, but there is also a need to guarantee that no one alters the data at either end of the transaction,” Gandhi said.